White House Issues Shutdown Warning; Kimmel Attracts Record Audience

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Good Morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.

Karen, we begin with politics.

With less than a week to go until a possible government shut down, the White House is telling federal agencies to make plans well beyond what they've done in the past.

We get the story from Bloomberg's Genus Cervetti.

The White House Budget Office is telling agencies to plan for mass firings during a shutdown. In the past, government workers deemed non essential have been furloughed and brought back when funding is restored, usually with back pay. This time, a White House memo is directing agencies to identify programs with discretionary funding that's set to lapse, then draft plans to eliminate jobs that don't align with Trump administration priorities.

Gina thank you at top judiciary official as warning federal courts will run out of money to fully operate as soon as next week if Congress fails to avoid a government shutdown. Judge Robert Conrad says the judiciary has funds to sustain operations through October third, but tight budgets have reduced the ability to extend operations.

Later today, Karen, President Trump meets with the leaders of Turkey and Pakistan. He'll welcome Turkish president Retship tie Up Ertawan late in the morning. Ertawan is helping to reset ties that have been shaken by tariffs and Turkey's purchases of Russian weapons. Turkish officials say today's meeting could clear the path for more than fifty billion dollars of deals on US liquified natural gas, Lockheed Martin fighter jets, and

Let's turn to Late Night Now, Nathan and Jimmy Kimmels returned to TV drew his biggest audience ever. At the same time, though ABC is preparing for a legal battle and blimberge. John Tucker joins us with the details. John, good morning, and Hey, let's start with those ratings for the show. What did they show?

Well, Karen, six point two six million people tuned in to see Jimmy Kimme alive.

We are back to work doing our show.

Compare that to one point five to five million viewers the show has averaged this year. This according to Nielsen Data. Well, the numbers don't include viewers who watched the program on streaming services, and the total was particularly high considering that next Our Media and Sinclaire, two large owners of ABC affiliates, didn't air the show. Together, they reach about twenty five

All right, John, thank you, turning to the economy now. Jobless claims, trade and durable goods orders will be released later this morning, but the real market focus may be on the enormous number of FED speakers we'll be hearing from today. Let's get the details from Bloomberg's Michael McKee.

By the end of this week, there should be no question about where individual FED policymakers stand on rap cuts, regulation and the dollar. Fourteen of the nineteen members of the Rate Setting Open Market Committee are speaking, including seven today. New Governor Stephen Myron leads off with an interview on Bloomberg Radio this morning, followed by Chicago's Austin Goulsby, Kansas Cities Jeffrey Schmid, Governors Mickey Bowman, and Michael Barr Lori

San Francisco FED President Mary Daly says further interest rate cuts are likely needed, but the Central Bank should approach those with caution. Daily spoke at an event at the University of Utah.

Now, my own view is that further policy adjustments are likely. Will they come right now this year, are going forward? It's hard to say. But what's really important is that making those policy adjustments will likely be required to balance both of our goals. Keep pressure on inflation to bring it to price stability, and offer support to the labor market to ensure that it stays near full employment.

San Francisco FED President Mary Daily says she fully supported this Central Bank's decision less we to cut interest rates for the first time since December.

Looking at the equity markets this morning, Karen futures are kind of taking a breather this morning, following back to back losses on Wall Street. Amanda Agatti is chief Investment Officer of Asset Management at P and C Banks.

She remains bullish.

With the FED and rate cutting mode here. The backdrop is pretty supportive for markets, but I think at some point, you know, things are going to get a little bit choppy. You know, we can't be priced for perfection here in a backdrop that is not necessarily perfect. But I do think that the earnings growth backdrop in particular looks really interesting and somewhat bullish heading into twenty twenty six.

P and C Bank's Amanda Gotti says stocks may rise another three to five percent by the end of this year.

In company news, Nathan Intel shares are up another three and a half percent this morning, following yesterday's six percent gain. Bloomberg News has learned that chip maker is seeking an investment from Apple. We're told it's part of Intel's effort to bolster business now that it's partially owned by the US government. Bloomberg's Ryan Gould broke the story.

This obviously comes on the back of both the US government investing in Intel directly one of its largest shareholders, and also would potentially follow a five billion dollar investment from both in Nvidia and a two billion dollar investment from SoftBank. I guess one way to put this all together is you know Intel is on the comeback.

And Bloomber's Ryan Gould reports Intel also has reached out to other companies about possible investments and partnerships.

And Karen HSBC says it's made a tech breakthrough deploying quantum computing in financial markets. The bank says it's the first time real trades have been used at scale to show the potential benefits of this emerging technology. Bloomberg's Tiwa Autubio has more from London.

Now, this wasn't live trading, it was a trial. It was also a collaboration with IBM. They used their most advanced heron quantum processor and they say that that shows they're able to attain a thirty four percent improvement in predicting how likely a bond will trade at a given price.

That was Bloomberg's Tiwa Audobio.

Time now for a look at some of the other stories making news in New York and around the world, and for that were joined by Bloomberg's Michael Barr or Michael good Morning, Good.

Morning, Karen. The motives of a shooter who authorities say opened fire from a roof on to a us ICE location in Dallas remain unclear. The man used rifle to kill one detainee and wound two others in a transport man before taking his own life. The suspected gunman has been identified as Joshua John and was twenty nine years old. Authorities say he seemed to fire indiscriminately. The FBI said ammunition found at the scene contained anti ICE messaging. Vice

You don't have to agree with Donald Trump's immigration policies, but if your political rhetoric encourages violence against our law enforcement, you can go straight to hell and you have no place in the political conversation of the United States of America.

House Minority Leader Hakim Jeffries also commented on the shooting, saying the level of political violence in the country is far too high.

We need leadership that brings people together, not national leadership that.

Tears people apart.

Authority say no ICE agents were injured and the surviving detainees are in critical condition. The NVPD arrested a man after a tourist was killed and her husband was critically injured after they were struck by a vehicle in midtown Manhattan. It happened yesterday afternoon at fortieth Street and Fifth Anue. According to police, a blue Toyota van hit the pedestrians, believed to be tourists from Germany, and then fled the scene. The woman, also in her fifties, died at the scene.

As Russia's war against my country goes on, people are still dying every week, Yet there is no cease fire because Russia refuses.

Global news twenty four hours a day and whenever you want it with the Bloomberg News. Now now, Michael Barn, this is Bloomberg.

Karen.

Thanks Michael, time now for our Bloomberg Sports Update, and for that we bring John Stashauers.

Thanks, Garrener's a big knight for American laying home run hitters. In New York, Aaron Judge two home runs numbers fifty and fifty one on the season. The Yankees beat the White Sox nine to one and they move into a tie for first place in the AL East with Toronto. And then in Seattle, Cal Riley with two home runs numbers fifty nine and sixty the Mariners beat the Rockies nine to two. They've won sixty to the last seventeen.

All lost.

The Mets remade one game ahead of the Reds and Diamondbacks.

That's the Bloomberg Sports Update.

Stay with us more from Bloomberg day Break coming up after this.

Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business opp This is Bloomberg Daybreak.

Good morning, I'm Nathan Hager.

Six days to go until a possible government shut down in Washington, and the White House is apparently telling agencies to make more drastic preparations than they've done before. A memo has gone out calling for mass firings if they can't reach an agreement with Democrats by Wednesday. House Minordi Leader Hakim Jeffrey says Democrats are still willing to negotiate.

If the government shuts down, it will shut down because Donald Trump and Republicans in the House and the Senate have made that decision so intentionally inflict pain on the American people.

It was House Minoriti Leader Hakim Jeffries.

For more on this, we're joined by Bloomberg News editor Alexander Pearson and Alexando In the past, when there have been government shut downs, the non essential workers get furloughed and then when the funding comes back, they usually get back pay. But this memo about mass firings does seem to take things pretty far.

Good morning, Yeah, good morning, Nathan, thanks for having me. Yeah, that's right. Previously, non essential workers usually we get furlowed in this kind of situation and then return and get back pay. But this memo from the Office of Management and Budget, which was sent out yesterday to federal agencies actually outlines or actually asked for plans to fire those non essential workers or at least some of them, but

Of course, this comes just a couple of days after President Trump was set to meet with Democrats at the White House to try to come to some kind of impass around the healthcare demands that Democrats have made.

That meeting has been called off.

Could we view this as potentially a negotiating tactic on the White House's part.

Yeah, I think that's accurate. I think this is most likely an attempt by the administration to up the ante on Congressional Democrats who haven't budged from the provisions that they want to add to the stopgap measure to fund

Yeah, and we've seen reports that those firings have been reversed in some cases that some agencies may have felt like the layoffs went too far. Where are Democrats on this right now? What is the reaction from the Democratic Party to this memo?

Right now? The reaction has been, you know, understandably hostile. Hakim Jeffries tweeted out overnight responding to a report on this memo that you know, this was unacceptable was essentially his message to Russell Void, the head of the Office of Management and Budget. So their message is very much, you know, we're not intimidated by this tactic. We're going to continue making the demands that we've been making to fund the government past September thirtieth. So that's the message

To see and in just thirty seconds, I mean, if this layoff a process goes forward, I.

Mean that could have a major economic impact, couldn't it.

That's true? Yeah, I mean, you know, government spending obviously makes up quite a significant chunk of economic activity, particularly the federal government. So you know, the longer a shutdown drives on, the more of an impact it can have on overall economic activity. So you know, both sides will ultimately want to come to a resolution if it comes to a shutdown, but obviously they want to avoid a

To a resolution.

This is Bloombery Daybreak, your morning podcast and the stories making news from Wall Street to Washington and beyond.

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And I'm Nathan Hager.

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